Providence Resources P.l.c.: Update on Barryroe Farm-out Transaction
Monday 8 July 2019
Providence Resources P.l.c., the Irish based Energy Company, provided a commercial and operational update in relation to Standard Exploration Licence (“SEL”) 1/11 which contains the Barryroe oil accumulation. SEL 1/11 is operated by EXOLA DAC (40%), a wholly-owned Providence subsidiary, on behalf of its partners, APEC Energy Enterprises Limited and Lansdowne Celtic Sea Limited (10%). The area lies in c.100 metre water depth in the North Celtic Sea Basin and is located c.50 km off the south coast of Ireland.
Background
On June 5, 2019, the Company announced that it had agreed certain amendments to the Farm-Out Agreement for the Barryroe Project with APEC Energy Enterprises Limited and, together with EXOLA and Lansdowne, including a revised backstop date with APEC for receipt of the US$ 9 million loan advance to June 14, 2019. On June 17, 2019, the Barryroe Partners agreed to a further extension of the backstop date to no later than July 5, 2019. Pursuant to the terms of the Updated FOA, this US$ 9 million loan is to cover the costs associated with front-end well-site survey operations and pre-drill well consenting.